Chapter Exam - Group Life
Company XYZ offers a group Term Life insurance plan to its employees. What does each employee covered under this plan receive?
Certificate of Insurance
Group life insurance policies are generally written as:
Annually renewable term
Which requirement must be met for an association to be eligible for a group life plan?
Group was formed for a purpose other than acquiring insurance
Which of the following statements about noncontributory employee group life insurance is FALSE?
A minimum number of employees is required to participate
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?
Contributory
What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?
Conversion
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Employee
Which of the following is an important underwriting principle of group life insurance?
Everyone must be covered in the group
When an employee is terminated, which statement about a group term life conversion is true?
Policy proceeds will be paid if the employee dies during the conversion period
A noncontributory group term life plan is characterized by:
The entire cost of the plan is paid for by the employer